CANADA FX DEBT-Oil, gold help C$ rally to highest since Oct. 22

Reuters Staff

2 Min Read

* Choppy session expected given thin liquidity

* Bond market closed for Remembrance Day

By Frank Pingue

TORONTO, Nov 11 (Reuters) - The Canadian dollar rose to its
highest level in nearly three weeks on Wednesday given the mix
of broad U.S. dollar weakness and stronger prices for key
Canadian exports like oil and gold.

Canada's currency CAD=CAD=D3 rose as high as C$1.0433
to the U.S. dollar, or 95.85 U.S. cents, its highest level
since Oct. 22, before backing off slightly.

Helping power the latest rally were gold prices that hit
record highs near $1,120 an ounce and oil prices that firmed
above $79 a barrel. [GOL/] [O/R]

Both are key Canadian exports and their prices often
influence the direction of the Canadian dollar.

Compounding the gain was a greenback that extended a recent
decline given concerns about the U.S. economy and expectations
interest rates will remain low. [FRX/]

"It's a combination of all of those factors," said Adam
Cole, global head of FX strategy at RBC Capital Markets in
London. "But the liquidity will be pretty challenged today so
it could get choppy indeed."

Canada is observing Remembrance Day and the United States
is observing Veterans Day on Wednesday.

At 9:00 a.m. (1400 GMT), the Canadian unit was at C$1.0452
to the U.S. dollar, or 95.68 U.S. cents, up from C$1.0501 to
the U.S. dollar, or 95.23 U.S. cents, at Tuesday's close.

The Canadian bond market is closed on Wednesday for
Remembrance Day.
(Editing by Jeffrey Hodgson)